Example: Purchased raw materials (GI Sheets) for $125‚125 from Sheets Supplier Company on credit. We have Raw Materials Inventory (Real Account) and Sheets Supplier Company (Personal Account). Golden Rule for Personal account Credit the giver. So entry would be : Raw Materials(Sheets) Inventory Debit $125‚125 Sheets Supplier Company Credit $125‚125 Nominal Account All expenses & Losses should be Debited All income & gains should be Credited Example : Used Sheets for $50‚100 for
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Introduction Accounting is a finance support system that * Records transactions. * Classifies transactions and events. * Expresses transactions in monetary terms. * Helps to monitor the financial performance and condition of Business. * Helps to evaluate the business. * Helps to establish controls for the business. Accounting helps to arrive at the financial position of an organization at any point of time. The organization’s financial status‚ as on a particular date
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Financial Accounting (ACC106) Mega Lawa Trading is a sole proprietorship business owned by Milah Mela. Transactions below are the business activities for the month of December 2013. Date Transaction Effects of Transaction Principles of Double Entry 1 Started a business with a cash at bank for RM 15‚000 and cash in hand for RM 10‚000 3 Purchased machinery on credit from Happy Machine Supplies amounted to RM 90‚000 4 Bought inventories amounted to RM 2‚000 on cash from Bedah
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Sept 30 ? Net income for September 20‚000 What would equity be on September 1 and September 30? A) $86‚000; $ 4‚000. B) $86‚000; $106‚000. C) $74‚000; $ 94‚000. D) $74‚000; $ 4‚000. E) None of these answers is correct. 4. Double-entry accounting is: A) An accounting system that disregards the accounting equation‚ A = L + E. B) An accounting system that records the effects of transactions and other events in at least two accounts with equal debits and credits. C) An accounting
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3. Two parties 4. Independent 5. Visible or invisible An Accounting is an accounting record of increases and decreases in a specific asset‚ liability or owner’s equity item. Double Entry system: An introduction to the double entry system that is the foundation of modern accounting. In the double entry system the dual (two-sided) effect of each transaction is recorded in appropriate accounts. This system provides a logical method for recording transactions. The term Devit and Credit are
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transactions that affect its assets‚ liabilities‚ and equity. There are several journals to record the transactions in; general journal‚ cash receipts journal‚ cash disbursements journal‚ purchases journal‚ sales journal‚ and other special journals. The journal entries are in the form of credits and debits entries to the correct accounts. After journalizing comes posting. Posting is usually done once a month. The journal entries are transferred to ledger accounts. There are four steps: post to debit account
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Matric no: ______________ Group: _________ Attendance list no: _____________ Tutorial 1: Chapter 1‚ 2‚ 3 DUE DATE: 3 OCTOBER 2013 1. Accounting is a process involving the following activities‚ EXCEPT: A. recording of economic activities B. communicating to stakeholders C. identifying relevant economic activities D. guaranteeing profitability of business operation 2. A senior accountant working at the Account Department of Universiti Utara Malaysia is also known as: A. a public
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Chapter 02 - Investing and Financing Decisions and the Accounting System HANDOUT 2 – 1 SOLUTION‚ continued ANALYZING TRANSACTIONS Analyze each of the following transactions of World Wide Webster by performing each of the following. Then‚ use the chart on the following page to keep track of the amount in each account: (a) Stockholder invests $10‚000 into the business in exchange for 10‚000 shares of $1 par value common stock. 1. Decide if a transaction took place. Yes – received cash and gave stock
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lesson below is the main rule accountants and accountant wanna-be’s follow when entering entries in the journal and the ledger. This rule may not change for it has already been set and followed by a lot of people. A journal entry is not complete if only one side has an entry‚ there is supposed to be entries in both sides. The general rule of debit and credit: For every entry in the debit side‚ there is a matching entry in the credit side. This rule is close to karma that for every good/bad deed you have
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Decrease Increase Equity Decrease Increase Income Decrease Increase Expense Increase Decrease Journal entry: The assumptions are Economic entity‚
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